The fundamentals of NZD/USD

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The new Zealand dollar is nicknamed the Kiwi, as most thins New Zealand, after the indigenous bird of the same name; term Kiwi refers to both NZD and the NZD/USD pair.  Given the relatively small size of the New Zealand economy, Kiwi is among the most interest-rate sensitive of all currencies. #wetradefx (aka Currency Traders Club) we put Kiwi in the commodity currency grouping, but there is an important distinction to not.  New Zealand is primarily and agricultural-commodity-producing economy, as opposed to the metals and energy commodities of Canada and Australia. As such, Kiwi displays a weaker relationship than CAD and AUD to the prices of gold, silver, and oil. Kiwi trading is closely tied to Australian data and prospects, due to strong trade and regional relationship.  We use a general rule when it comes to Kiwi in that when it`s a USD-based move, Aussie and Kiwi will tend to trade in the same direction as each other relative to the USD.

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